Oil Prices Soar Past $100 a Barrel as US-Iran Tensions Escalate

Oil prices surged past $100 a barrel on Wall Street Wednesday as tensions between the US and Iran escalated, driving down stocks across various sectors.

The price of Brent crude rose 3.3% to $101.18 a barrel, marking the first time it surpassed $100 since July. The jump in oil prices has fueled already high inflation, with gasoline prices in the US up about 32% from last year to $4.22 per gallon.

The conflict between the two nations began in February and has essentially shut down traffic in the Strait of Hormuz, where a fifth of the world's oil supply passed before the war started. The US destroyed five Iranian tankers on Tuesday in a series of attacks.

Higher fuel prices cut into household budgets directly when it comes to driving costs, but also indirectly raise prices for goods due to higher shipping costs. The price of diesel, which has an outsized impact on consumers, hit an all-time high and continued to climb since.